Transportation Sector Update

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Transportation Sector Update Source: The Economist 0 5 10 15 20 25 30 1980 1985 1990 1995 2000 2005 Year China US 25 million barrels p 2020 forecast QuickTime™ and a TIFF (Uncompressed) decompressor are needed to see this picture.

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Transportation Sector Update. Source: The Economist. Population of Chinese Cars and Trucks Has Increased by More Than 12 Times in 25 Years. truck. car. 2005-01-354. The Growth in Chinese Vehicle Population Is Only at Its Beginning. 20000. ANL. US DOE. NAS High. 15000. NAS Low. - PowerPoint PPT Presentation

Transcript of Transportation Sector Update

Page 1: Transportation Sector Update

Transportation Sector Update

Source: The Economist

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1980 1985 1990 1995 2000 2005

Year

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ions

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25 million barrels per day 2020 forecast

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Page 2: Transportation Sector Update

2005-01-354

1978-2003 auto population in China

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Population of Chinese Cars and Trucks Has Increased by More Than 12 Times in 25 Years

Page 3: Transportation Sector Update

The Growth in Chinese Vehicle The Growth in Chinese Vehicle Population Is Only at Its BeginningPopulation Is Only at Its Beginning

501 523

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764

428

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64226

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India China Brazil Maxico U.K. France Japan Canada U.S.

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Chinese Vehicle Population Could Chinese Vehicle Population Could Reach 100 Million by 2020Reach 100 Million by 2020

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Tsinghua

CATARC 1

CATARC 2

ANL

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Both Passenger and Freight Traffic Volume Both Passenger and Freight Traffic Volume Will Increase DramaticallyWill Increase Dramatically

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China’s Crude Oil ImportsChina’s Crude Oil Imports

Middle East 45%

Europe and Western Hemisphere 14% Asia-Pacific 12%

Africa 29%

Source: Calculated from data in China OGP, February 1, 2005.

Page 7: Transportation Sector Update

China’s Oil Use Is Catching Up China’s Oil Use Is Catching Up with That of U.S. Fastwith That of U.S. Fast

Source: Feng An, Consultant

Page 8: Transportation Sector Update

CSEP Transportation Program StrategyCSEP Transportation Program Strategy

1.1. Fuel Economy StandardsFuel Economy Standards

2.2. Vehicle Emissions StandardsVehicle Emissions Standards

• Urban air pollutantsUrban air pollutants

3.3. Cleaner Conventional Fuels (e.g., Cleaner Conventional Fuels (e.g., low sulfur)low sulfur)

4.4. Alternative FuelsAlternative Fuels

5.5. Advanced Vehicle TechnologiesAdvanced Vehicle Technologies

• Hybrid Electric, Fuel Cell R&DHybrid Electric, Fuel Cell R&D

6.6. Bus Rapid Transit SystemsBus Rapid Transit Systems

Page 9: Transportation Sector Update

Chinese Vehicle Fuel Consumption is Higher Chinese Vehicle Fuel Consumption is Higher Than Many Other CountriesThan Many Other Countries

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24.7% 39.4%

48.4%

Page 10: Transportation Sector Update

China Adopted Phase 1 and Phase 2 Fuel China Adopted Phase 1 and Phase 2 Fuel Consumption Standards in 2004Consumption Standards in 2004

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Chinese Fuel Economy Standards vs. Fuel Chinese Fuel Economy Standards vs. Fuel Economy of 2001 Model-Year U.S. Vehicle ModelsEconomy of 2001 Model-Year U.S. Vehicle Models

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Page 12: Transportation Sector Update

Results: Fuel Economy Standards

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Page 13: Transportation Sector Update

Results: Vehicle Tax PolicyResults: Vehicle Tax Policy

0% 10% 20% 30% 40% 50%

4.0 or more

2.50 to 3.99

2.00 to 2.49

1.50 to 1.99

1.00 to 1.49

Less than 1.0

Mar

ket S

hare

Engine Size (in L)

North America

China

Passenger Vehicle Market Share by Engine Size

Source: New York Times

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The Top Three Most Polluted Cities in the The Top Three Most Polluted Cities in the World Are Chinese CitiesWorld Are Chinese Cities

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EU India China

1995 EURO I - -

1996 EURO II - -

1999 EURO II - -

2000 EURO III - ERUO I

2001 EURO III EURO I ERUO I

2002 EURO III EURO I ERUO I

2003 EURO III EURO I ERUO I

2004 EURO III EURO I EURO II

2005 EURO IV EURO II EURO II

2006 EURO IV EURO II EURO II

2007 EURO IV EURO II EURO II

2008 EURO V EURO II EURO III

2009 EURO V EURO II EURO III

2010 EURO V EURO III EURO III

Strengthened Vehicle Emission Strengthened Vehicle Emission Standards Require Low-Sulfur FuelsStandards Require Low-Sulfur Fuels

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uel (

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Sulfur Content in Chinese Gasoline and Diesel is Sulfur Content in Chinese Gasoline and Diesel is Much Higher than in the EU or U.S.Much Higher than in the EU or U.S.

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Coal to Liquid Fuels: An Opportunity or a Coal to Liquid Fuels: An Opportunity or a Carbon Risk?Carbon Risk?

• China’s coal: China’s coal: – reserves of 200 billion tonsreserves of 200 billion tons– coal resource of 600 billion tonscoal resource of 600 billion tons– ultimate coal resource of 1440 ultimate coal resource of 1440

billion tonsbillion tons

• Liquid fuels can be produced from coal viaLiquid fuels can be produced from coal via– Direct liquefaction to gasoline and diesel: requiring Direct liquefaction to gasoline and diesel: requiring

high-quality coalhigh-quality coal– Indirect liquefaction via gasification to: methanol, Indirect liquefaction via gasification to: methanol,

dimethyl ether, Fitscher-Tropsch diesel, and dimethyl ether, Fitscher-Tropsch diesel, and hydrogenhydrogen

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Coal to Liquid Fuels: An Opportunity or a Coal to Liquid Fuels: An Opportunity or a Carbon Risk?Carbon Risk?

• Status of liquid fuel production from coal:Status of liquid fuel production from coal:– Methanol: current production of 5 million tons a yearMethanol: current production of 5 million tons a year– DME: current production 40,000 tons a yearDME: current production 40,000 tons a year– Direct liquefaction: a plant of 3.2 million tons of oil a year to be Direct liquefaction: a plant of 3.2 million tons of oil a year to be

completed in 2007; 10 million tons possible by 2010completed in 2007; 10 million tons possible by 2010– Indirect liquefaction: Several projects are under considerationIndirect liquefaction: Several projects are under consideration

• Both direct and indirect liquefaction have low conversion efficiencies, Both direct and indirect liquefaction have low conversion efficiencies, resulting in large amounts of carbon emissions during productionresulting in large amounts of carbon emissions during production– Direct liquefaction makes carbon capture economically infeasibleDirect liquefaction makes carbon capture economically infeasible– Indirect liquefaction makes carbon capture and sequestration Indirect liquefaction makes carbon capture and sequestration

feasiblefeasible• Captured carbon could be used for enhanced oil recovery in NW Captured carbon could be used for enhanced oil recovery in NW

ChinaChina• Policy is required for systematic carbon capture and Policy is required for systematic carbon capture and

sequestrationsequestration

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Results: Bus Rapid TransitResults: Bus Rapid Transit

• Dedicated bus lanes

• Station-to-station

• Priority at intersections

• Hybrid-electric buses

• Lead cities: Beijing, Kunming, Xian, Shanghai, Chengdu

• 15 more cities in advanced planning

• New NGO — “China Sustainable Transportation Center”

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Clean Energy SolutionsClean Energy Solutions

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Renewables & Gas

Source: LBNL

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Challenges AheadChallenges Ahead• Capacity building at provincial and local levelsCapacity building at provincial and local levels• Government budgetsGovernment budgets• Monitoring and enforcementMonitoring and enforcement• Elevate SEPA; vertical integrationElevate SEPA; vertical integration• Energy intensity targets as proxy for KyotoEnergy intensity targets as proxy for Kyoto• U.S. government engagement U.S. government engagement

in funding energy efficiency and in funding energy efficiency and renewable energy policy capacityrenewable energy policy capacity

• U.S. federal policy leadership; U.S. federal policy leadership; China (and the world) need U.S. China (and the world) need U.S. clean energy innovationclean energy innovation

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T h e C h i n a S u s t a i n a b l e E n e r g y P r o g r a m中 国 可 持 续 能 源 项 目

Further Information:

www.efchina.org

www.ef.org

Michael Wang: [email protected]

Doug Ogden: [email protected]

Page 23: Transportation Sector Update

Chinese NGO Trends• Increasing environmental NGO registrations• Challenge of “free association”• Groups focusing on:

– “Green” GDP– “Recycling Economy”– Water pollution; mercury– Public education re: dams (Nu River EIA)– Develop the West program (illegal logging)– “Car Free Days” in major cities– Green products consumer awareness– Etc.